Matthews International (NASDAQ:MATW) Reaches New 1-Year High on Earnings Beat

Key Points

• Stock hit a 52-week high after an earnings beat: Matthews reported $0.37 EPS vs. $0.17 expected and revenue of $258.62M (vs. $253.65M), with the stock trading as high as $30.93.
• Dividend declared: The company announced a $0.255 quarterly dividend (annualized $1.02) for a 3.4% yield, ex-dividend date May 11, though the dividend payout ratio is high at 143.66%.
• Analyst and institutional activity: Recent upgrades from Weiss and Zacks lifted the consensus to "Hold," institutional ownership is about 83.08%, and the stock carries a market cap of $925.5M with a P/E of 41.56.

Matthews International Corporation (NASDAQ:MATW - Get Free Report) reached a new 52-week high on Friday after the company announced better than expected quarterly earnings. The stock traded as high as $30.93 and last traded at $29.81, with a volume of 41891 shares. The stock had previously closed at $28.54.

The company reported $0.37 earnings per share for the quarter, beating analysts' consensus estimates of $0.17 by $0.20. Matthews International had a return on equity of 5.95% and a net margin of 1.64%.The firm had revenue of $258.62 million during the quarter, compared to analysts' expectations of $253.65 million.

Matthews International Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Monday, May 25th. Investors of record on Monday, May 11th will be issued a dividend of $0.255 per share. This represents a $1.02 dividend on an annualized basis and a yield of 3.4%. The ex-dividend date of this dividend is Monday, May 11th. Matthews International's dividend payout ratio (DPR) is currently 143.66%.

Analyst Upgrades and Downgrades

A number of equities research analysts recently weighed in on MATW shares. Weiss Ratings raised Matthews International from a "sell (d)" rating to a "hold (c)" rating in a report on Friday, February 6th. Zacks Research raised Matthews International from a "strong sell" rating to a "hold" rating in a report on Monday, April 6th. Two analysts have rated the stock with a Hold rating, According to data from MarketBeat, the company has an average rating of "Hold".

Institutional Investors Weigh In On Matthews International

Hedge funds and other institutional investors have recently made changes to their positions in the company. US Bancorp DE grew its stake in shares of Matthews International by 45.9% during the third quarter. US Bancorp DE now owns 2,063 shares of the company's stock worth $50,000 after purchasing an additional 649 shares during the period. Wealth Enhancement Advisory Services LLC bought a new position in Matthews International during the third quarter worth about $59,000. Potomac Capital Management Inc. bought a new position in Matthews International during the fourth quarter worth about $59,000. Tower Research Capital LLC TRC boosted its holdings in Matthews International by 187.1% during the second quarter. Tower Research Capital LLC TRC now owns 2,885 shares of the company's stock worth $69,000 after buying an additional 1,880 shares during the last quarter. Finally, Tripletail Wealth Management LLC increased its stake in shares of Matthews International by 206.5% in the 4th quarter. Tripletail Wealth Management LLC now owns 2,820 shares of the company's stock valued at $73,000 after acquiring an additional 1,900 shares during the last quarter. 83.08% of the stock is owned by institutional investors and hedge funds.

Matthews International Trading Up 4.2%

The company has a current ratio of 1.51, a quick ratio of 0.91 and a debt-to-equity ratio of 0.98. The company has a market capitalization of $925.53 million, a P/E ratio of 41.56 and a beta of 1.12. The business has a 50 day moving average price of $26.21 and a 200 day moving average price of $25.75.

About Matthews International

Matthews International Corporation NASDAQ: MATW is a diversified industrial company headquartered in Pittsburgh, Pennsylvania. The company operates through two primary business segments—Brand Solutions and Memorialization—offering a broad range of products and services designed to meet the needs of industrial manufacturers, brand marketers and the funeral industry worldwide.

In its Brand Solutions segment, Matthews International provides engraving and digital printing systems, automated finishing equipment, thermal management products and electronics assembly solutions.

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